BAKU, Azerbaijan, August 3. Central Bank of Azerbaijan (CBA) continues to implement reforms with the aim to improve the quality of services provided to consumers and consumer protection rights by using successful international experience in the field of compulsory automobile liability insurance (CALI), as well as in other areas, Trend reports via Azerbaijani Central Bank.
"Within this framework the Board of CBA approved "Law on regulating the mutual payments in relation to compensation caused to transport, which was driven by a victim in a traffic accident (direct regulation of losses)" and "Procedure for calculating the amounts of insurance premiums for compulsory civil Liability insurance of vehicle owners," the CBA said.
The rules developed for the direct settlement of losses establishes the procedure of receiving insurance compensation in the form of subrogation from the insurer of the injured party, who directly applied to the insurer with whom he concluded the CALI contract, in the event of a traffic accident that caused a collision of two vehicles, and the policyholder to receive the victim insurance compensation carried out by his insurer.
"On the basis of changes, the index for risk factors taking into the account the possibility of damaging the property and health of third parties during the operation of the vehicle depending on the experience and age of the driver, the number of people, that have the right to operate the vehicle, the intensity of traffic in the region, in which the vehicle is operated and the duration of operation of the vehicle," the CBA said.
Furthermore, changes in the bonus -malus system are being made (bonus-malus is a system discounts or supplements applied to tariffs depending on whether the policyholder has committed an event or not), established by the relevant laws and its application is provided.
These changes will contribute to increase of responsibility of drivers while operating the car and the elimination of existing problems in the field of CTP by motivating insurance companies to the better service for customers, increasing public trust in insurance, and developing the insurance market as a whole, the CBA said.